Seoul: South Korean stocks closed mildly higher Friday, extending their win for a second straight session, amid rising hopes for a diplomatic resolution to the conflict between the United States and Iran. The local currency lost ground against the U.S. dollar.

According to Yonhap News Agency, the benchmark Korea Composite Stock Price Index (KOSPI) gained 32.12 points, or 0.41 percent, to close at 7,847.71. On Thursday, the KOSPI spiked more than 8 percent on tech gains. Overnight, U.S. stocks advanced after Iran mentioned that the latest proposal from the U.S. partly bridged the gap between the warring sides, raising hopes that the three-month war may end soon with a peace deal.

In Seoul, large-cap shares were trading mixed, while foreigners extended their sell-offs for the 12th consecutive session. Semiconductor heavyweight Samsung Electronics went down 2.34 percent to 292,500 won, following the previous day's sharp gains. In contrast, SK hynix edged up 0.05 percent to 1,941,000 won per share.

The Korean won was quoted at 1,517.2 won against the U.S. dollar at 3:30 p.m., down 11.1 won from the previous session.